A SEMINAR REPORT

ON

CHANGING ORGANISATION CULTURE OF

INDIAN CORPORATE WORLD

In partial fulfillment for the award of the degree

of

Masters of business administration

SUBMITTED TO SUBMITTED BY

Prof: Raminder Kaur Pawandeep kaur

Dept: School of Management studies Roll no 5354

MBA – I (D)

At

SCHOOL OF MANAGEMENT STUDIES

PUNJABI UNIVERSITY, PATIALA

ACKNOWLEDGEMENT

I would like to take this opportunity to thank Prof: Raminder Kaur, Lecturer, MBA Department,

School of Management Studies, Patiala who has been guiding force for my Report on

“Changing organization culture of Indian corporate world”.

I am also thankful to my friends, for their support and encouragement in finding out the

appropriate material for this Report, without them making this report would have been

impossible.

CONTENT

Organization culture overview

What is organization culture?

Nature,functions,drawbacks ,levels of organization culture

Pattrens ,types of organization culture

The factors which changing organization culture in corporate world

Style of leadership of managers

Common Language

Organization characteristics

Group boundaries for inclusion or exclusion

Distributing power and status

Developing norms of intimacy, friendship, and love

Rewards and punishments

Founders and owners of the company

The environment (juridical, economic, cultural, technological)

The working group, system procedure

Changes in staff

Company Heroes and Heroines

Stories ,legends

Reasons to change OC in Indian corporate world

Impact of changing education system

Impact of technology

Impact of changing expectations of employees

Impact of workload

Impact of competition

Impact of changing aspirations of company‟s customers

Methods adopted to change the OC in India

Effective leadership

Committed and active participation of leadership

Assigning a culture manager

Top management support

Training

A change in statement of beliefs, values

Management style, organization structure, organization style

Changing criteria for recruitment, selection

Changes in Indian companies organization culture

Effects by changing the organization culture

ORGANIZATION CULTURE OVERVIEW

What is organization culture?

Organizational Culture is

a) a pattern of basic assumptions

b) invented, discovered, or developed by a given group

c) as it learns to cope with its problems of external adaptation and internal integration

d) that has worked well enough to be considered valid and therefore

e) is to be taught to new members as the

f) correct way to perceive, think, and feel in relation to these problems

Organizational Culture is also a set of inter-related beliefs, shared by most of the employees of a

company about how one should behave at work and what activities are more important than

others .Organizational Culture can be deliberately determined or simply allowed to evolve

Organizational Culture should be identified during formulation of strategy and led by leadership

and top management example

Organizational culture is an idea in the field of organizational studies and management which

describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values)

of an organization. It has been defined as "the specific collection of values and norms that are

shared by people and groups in an organization and that control the way they interact with each

other and with stakeholders outside the organization." Ravasi and Schultz (2006) state that

organizational culture is a set of shared mental assumptions that guide interpretation and action

in organizations by defining appropriate behavior for various situations. Although it‟s difficult to

get consensus about the definition of organizational culture, several constructs are commonly

agreed upon – that organizational culture is holistic, historically determined, related to

anthropological concepts, socially constructed, soft, and difficult to change. A single definition of

organizational culture has proven to be very elusive. No one definition of organizational culture has

emerged in the literature. One of the issues involving culture is that it is defined both in terms of its

causes and effect. For example, these are the two ways in which cultures often defined.

1. Outcomes- Defining culture as a manifest pattern of behavior- Many people use the term

culture to describe patterns of cross individual behavioral consistency For example, when

people say that culture is “The way we do things around here,” they are defining consistent

way is in which people perform tasks, solve problems, resolve conflicts, treat customers, and treat employees.

2. Process- Defining culture as a set of mechanisms creating cross individual behavioral

consistency- In this case culture is defined as the informal values, norms, and beliefs that

control how individuals and groups in an organization interact with each other and with

people outside the organization.

Organizational culture is a macro phenomenon which refers to the patterns of beliefs,

assumptions, values, and behaviours reflecting commonality in people working together.

NATURE OF ORGANISATIONAL CULTURE

The culture of an organization may reflect in various forms adopted by the organization. These could

be:

The physical infrastructure

Routine behaviour, language, ceremonies

Gender equality, equity in payment

Dominant values such as quality, efficiency and so on

Philosophy that guides the organization‟s policies towards it employees and customers like

„customer first‟ and „customer is king‟, and the manner in which employees deal with customers.

Functions of organizational culture 1. Behavioral control

2. Encourages stability

3. Provides source of identity

Draw backs of culture 1. Barrier to change and improvement

2. Barrier to diversity

3. Barrier to cross departmental and cross organizational cooperation

4. Barrier to mergers and acquisitions

LEVELS OF ORGANISATIONAL CULTURE

1. At Level one the organizational culture can be observed in the form of physical objects,

technology and other visible forms of behavior like ceremonies and rituals. Though the

culture would be visible in various forms, it would be only at the superficial level. For

example, people may interact with one another but what the underlying feelings are or

whether there is understanding among them would require probing.

2. At Level Two there is greater awareness and internalization of cultural values. People in the

organization try solutions of a problem in ways which have been tried and tested earlier. If

the group is successful there will be shared perception of that „success‟, leading to cognitive

changes turning perception into values and

3. Level three represents a process of conversion. When the group repeatedly observes that the

method that was tried earlier works most of the time, it becomes the „preferred solution‟ and

gets converted into underlying assumptions or dominant value orientation. The conversion

process has both advantages. The advantages are that the dominant value orientation guides

behaviour, however at the same time it may influence objective and rational thinking.

These three levels range on a scale of superficial to deeply embedded. As cultural symbols get

converted to shared assumptions, they move from a superficial level to a real internationalised level

PATTERNS OF ORGANISATIONALS CULTURE

Types of Organizational Culture

Organizational culture can vary in a number of ways. It is these variances that differentiate one

organization from the others. Some of the bases of the differentiation are presented below :

1. Strong vs. weak culture : Organizational culture can be labeled as strong or weak based on

sharedness of the core values among organizational members and the degree of commitment the

members have to these core values. The higher the sharedness and commitment, the stronger the

culture increases the possibility of behaviour consistency amongst its members, while a weak

culture opens avenues for each one of the members showing concerns unique to themselves.

2. Soft vs. hard culture : Soft work culture can emerge in an organization where the organization

pursues multiple and conflicting goals. In a soft culture the employees choose to pursue a few

objectives which serve personal or sectional interests. A typical example of soft culture can be

found in a number of public sector organizations in India where the management feels

constrained to take action against employees to maintain high productivity. The culture is welfare

oriented; people are held accountable for their mistakes but are not rewarded for good

performance. Consequently, the employees consider work to be less important than personal and

social obligations. Sinha (1990) has presented a case study of a public sector fertilizer company

which was established in an industrially backward rural area to promote employment generation

and industrial activity. Under pressure from local communities and the government, the company

succumbed to overstaffing, converting mechanised operations into manual operations, payment

of overtime, and poor discipline. This resulted in huge financial losses (up to 60 percent of the

capital) to the company.

3. Formal vs. informal culture : The work culture of an organization, to a large extent, is

influenced by the formal components of organizational culture. Roles, responsibilities,

accountability, rules and regulations are components of formal culture. They set the expectations that

the organization has from every member and indicates the consequences if these expectations are not

fulfilled..

4. TABLE 1: FORMAL

COMPONENTS OF

ORGANISATIONAL

CULTURE Component

Description Effect on Organisational Culture

1 Mission/Vision The milestones to be reached

Could be unrealistic

2 Policies Statements designed to be guidelines to bahavioural decision

Policies, if not drafted properly can provide leeway

3 Procedures Methods of providing specific guidelines

Can facilitate or create obstacles in smooth functioning

4 Rules Specific instructions for performing a task

Rules could be a means or an end in themselves

5 State of Organizational Development

Organization at young, growing, maturing, or mature stage of development

State of organizational development has direct impact on work culture

The factors which change and formed the organizational culture

The style of leadership of the managers. This has a considerable effect upon the culture

of a group. Now if the manager is distant towards his/her subordinates, this attitude can

have a negative impact upon the culture. The trust in the manager, the embodiment of the

chief in a positive example can influence favorably the efficacy of the group. The

managers always influence, substantially, the organizational culture, their influence being

proportional to the hierarchical level. At the same hierarchical level, the influence differs

from one manager to another, because the level of training and the leading style are not

the same.

Common language There is no official national language. If English is its unofficial

first language, Spanish is its unofficial second language. Today in companies,the

language spoken most is English and this effect the organization culture at large scale.

Today the Indian corporate world is not limited its business only to the extent of Indian

boundaries but spread all over the world. In Indian companies, there is a very low rate of

people spoken Hindi and Punjabi, because the need of the time changes their

communication way which effect the organization culture and quite different the

traditional ways communication. Economies opened, and due to technological

developments in communication, transportation, and finance, there were fewer

difficulties with the practical issues of conducting business across national borders.

Communications technology showed exponential growth, including innovations that

facilitated doing business anywhere at anytime, such as remote access and net

conferencing.

The organizational characteristics. Today They can affect, also, the type of culture that

it is developed. The organizations differ according attributes as measure and complexity.

Between the complexity of the organization‟s culture and the size of the company (that

can be expressed through the business figure, capital, number of employees) there is a

direct proportional report. Moreover, the big organizations tend to higher degrees of

specialization and towards a bigger impersonal character. Usually, in the small

companies the culture is more homogenous, while in the big companies are clearly

shaped the sub-cultures. The organizations, also, differ according the degree of

formalization (expressed in rules, politics, norms) and after the degree of decentralization

and autonomy. The history of the company represents a factor with profound influence

upon the organizational culture with tradition; at the same time, it differentiates the

cultures of these organizations from the cultures of the new enterprises. The stage of the

life cycle of the company can constitute an important factor rarely taken into

consideration. The economic situation of the company influences the organizational

culture by its restrictions and

economic facilities.

Group boundaries for inclusion or exclusion

In Indian corporate world the adoption of these instructions for establish group

boundaries

1. In small group, take some silence and start to build community in this group. (have fun)

2. Examine the Barriers Handout. Discuss barriers in group in an attempt to find the barrier if

someone would like to transform (let go of or improve) in his life. (have fun)

3. Share personal insights with each other. (have fun)

4. Select a barrier (or barriers) to present to the large group. This can be a common barrier or

each person may feel a need to present their individual barrier. (have fun)

5. Together as a group, decide how someone wishes to present the barrier(s) and their

transformation to the large group. This can be done in about any way you desire. Be creative.

Make it fun. It can be just a report, a song or group of songs, or a poster, but a skit is preferred.

Try to keep the your presentation to 10 minutes. You can use props. The transformation should

embody emptiness in some way. (Have fun)

6. There are a few rules about the presentation:

· Do not use any presentation that uses fire or smoke (fire detectors may go off and stop the

workshop.)

· Do not require participation by individuals in the large group.

· Be mindful of our differences and respect all differences .

Ask if there are any question and for only one person at a time to speak.

A boundary is often created for protection and should only be changed with considerable

thought. A boundary "rule" is one you have originated that defines what is good or bad for you.

A boundary may be a barrier to communication depending on what it is. Are you aware of any

boundary you have that is a barrier to meaningful communications? Are you aware of any

boundary that you want to change? How will you do that and how will you know if it is safe to

change?

Boundaries are accumulated during life for protection and become a learned method of existing.

Boundaries need to be changed slowly and may be replaced with another boundary that offers

more freedom until it becomes safe to "take the next step". Some people have few or almost no

boundries and this often gets them into trouble. An example of this is a person that regulary

offers far more information that is asked for by people they talk to. This becomes a turnoff to

others and may result in other avoiding you.

Distributing power and status

As hierarchy increases power becomes difficult to concentrate at the top and there can be

a distribution of power to lower managers. Decentralization can occur as lower level

managers assume decision-making, but to retain some degree of standard operational

procedures, the organization increasing relies on written policies and procedures. This

formalization of organizational rules helps to maintain order across the growing

organization and ensures conformity and continuity in practices.

Also, with growth organizations begin to divide the work into ordered units that perform

specialized work. Increased specialization of work into departments is termed

differentiation. The extent to which an organization is departmentalized, divisionalized,

and hierarchically layered characterizes the organization‟s complexity.

Increased organizational size has important implications for management: it can limit the

flexibility of individual work, affect how much authority can be delegated, and lead to an

emphasis on results rather than how the work is actually performed (because results are

easier to monitor).This changes the organization culture at large scale.

Developing norms of intimacy, friendship, and love

Friendship is a form of interpersonal relationship generally considered to be closer than

association, although there is a range of degrees of intimacy in both friendships and

associations. Friendship and association can be thought of as spanning across the same

continuum. The study of friendship is included in the fields of sociology, social

psychology, anthropology, philosophy, and zoology. Various academic theories of

friendship have been proposed, among which are social exchange theory, equity theory,

relational dialectics, and attachment styles.Value that is found in friendships is often the

result of a friend demonstrating the following on a consistent basis adopted in the

corporate world:

The tendency to desire what is best for the other

Sympathy and empathy

Honesty, perhaps in situations where it may be difficult for others to speak the truth,

especially in terms of pointing out the perceived faults of one's counterpart

Mutual understanding and compassion; ability to go to each other for emotional support

Enjoyment of each other's company

Trust in one another

Positive reciprocity - a relationship is based on equal give and take between the two

parties.

The ability to be oneself, express one's feelings and make mistakes without fear of

judgement.

Rewards and punishments The consequences of behavior-what behavior is

rewarded and what is punished-can significantly influence culture. If the organization

reacts to new ideas by ridiculing the ideas and those who propose them, it won't take long

before people believe that new ideas are not welcomed or desired. One belief of

perceived organizational culture is reflected in the statement: "Don't raise questions or

suggest improvements, because nothing will come of it and you will just get in trouble."

If you were in an organization's strategic leader, what steps could you take to alter the

reward system to change this aspect of the culture? Employee motivation, positive

employee morale, rewards and recognition are explored in these resources. What creates

motivated, contributing people? How do you maintain high employee morale when

people work long hours? How does your reward and recognition system contribute to or

Every person has different reasons for working. The reasons for working are as individual

as the person. But, we all work because we obtain something that we need from work.

The something obtained from work impacts morale, employee motivation, and the quality

of life. To create positive employee motivation, treat employees as if they matter -

because employees matter. These ideas will help you fulfill what people want from work

and create employee motivation. Some companies offer rewards, incentives, and

promotions to employees

whose behavior supports the desired organizational culture. They believe

that these rewards encourage similar behavior in other employees and help

to perpetuate or change the culture. For example, 3M‟s promotion system

allows scientists and engineers to rise to high levels in the company

without becoming managers. This system allows them time to conduct

innovative research. The company also rewards employees who

recommend improvements in processes or innovative ideas for new

products.The company alsogives bonuses to production workers when a plant meets its

goals and up to 10 percent bonuses for salaried employees based on corporate success.

Each division receives 1 percent of its salaries for cash awards, which can amount to 8

percent of an employee‟s pay. In addition, to recognize exemplary contributions quickly,

employees are given thank you cards and dinner for two at a restaurant.

The founders and owners. In many cases, the founders create the philosophy of the

company and determine the basic values. The owners of the company can exert their influence from more points of view: of the type of owner (natural and/or juridical persons); the number of owners. When there are a reduced number of owners, their influence can be more profound

The environment (juridical, economic, cultural, technological). The juridical environment can influence the organizational culture positively or negatively. When it includes contradictory elements its influence upon the organizational culture is negative. The economic environment of the company reflects the status of the national economy. Thus, the economic crisis is also reflected at the organizational level. The individual who enter or are within an organization of businesses are ‘impregnated’ with the values, beliefs,attitudes that come from the national culture. The economic culture is derived from the national culture and presents particularities for each country, which manifests upon other variables – owners, employees, managers. The technique and technology used refer to the degree of technical endowment and the type of technologies used, which have implications over the organizational culture. Thus, the amplification of the degree of technical endowment of the companies has implications over the content of the organizational culture, after the reduction of the frequency and intensity of human contacts.

The working group. The working groups appear in organizations in different forms.

The working force is created by a formal authority, the organizations being networks of working groups. The variables that determine the formation of the group can be delimitated into the personal characteristics (personality, experience, training, attitudes), situational variables (the tasks to fulfill, available space, the way of granting the awards – respectively the group as a whole or the individual). Groups appear due to the need of affiliation, the necessity to reach the goals, physical approach, and compatibility between the personalities, the attitudes and values of the individuals. The nature of the group and the number of members affect the perceptions regarding the nature of the organizational culture. Each employee brings into the organization convictions, attitudes, behaviors, from whose intertwining results the organizational culture. The implication regarding the mission of the group influences the cultural perceptions. At the same time, the relationships within the group are decisive for the process of creation of the organization’s culture. The general existent attitudes towards the risk and the existence of conflict, the types of relationships of communication will have a considerable impact upon the working group. They affect, at the same time, the amplitude of the innovation and organizational creativeness. According these factors, the members of the organization will develop an impression about ‘what kind of working place is that’.

Systems, Procedures, and Processes Companies that are perpetuating or changing their cultures generally recognize that they

must make their systems, procedures, and processes compatible with their values and

beliefs. Motorola, for example, focuses on customer satisfaction by attempting to reduce

mistakes in its products and at the same time do its work faster. Its objective is to provide

customers “out-of-the-box” quality, on-time deliveries, and no early product failures. To

achieve this goal, Motorola established a standard measure of quality by the number of

defects found per unit. Each quarter, it reviews each division‟s level of quality in relation

to its quality goals. If a division does not meet the goals, the reviews are done monthly; if

the goals have still not been met, the reviews are done weekly. Federal Express believes

that customer satisfaction begins with employee satisfaction. Therefore, the company

developed systems, procedures, and processes to show that it values its employees. Among

these are a no-layoff policy, promotions from within, semiannual performance reviews to

help employees identify training needs and improve their skills, a program in which

employees may air perceived problems with higher-level management without fear of

repercussion, and employee ratings of managers.

Staff Changes When employees do not support a culture change or do not help to perpetuate the values and

beliefs that a company believes are important some companies replace employees or change

their responsibilities. DuPont, for example, has provided generous incentives to employees

that agree to retire early. It has also appealed to some employees‟ sense of duty in asking

them to move from key management positions. DuPont values its employees, however, and

in making these changes takes care to avoid disrespect and humiliation for the individual.

Federal Express also reassigns employees or changes their responsibilities when it determines

that they are not suited for their positions. The company bases its determination on an annual

survey questionnaire that indicates whether employees are satisfied with their managers. On

the questionnaire, employees rate their managers, and if a manager receives low score and

does not improve, the company tries to find another position within the organization that more

closely fits the person‟s &ilk+. Because the company values its employees, it does not attach

a stigma to such a change.

Stories, Legends, and Myths Some companies repeat success stories, legends, or myths to impress their values and beliefs on

employees. Corning, for example, distributed to its quality improvement teams worldwide a

notebook of stories on total quality successes. The company also includes stories related to the

value of quality in its total quality digest and in company and division newspapers. One story

exemplified the importance of viewing a product through the customer‟s eyes. On a tour

through a customer‟s plant, Corning employees were shown samples of a chipped and cracked

Corning product and a competitor‟s product that was in good condition. Corning was in danger

of losing the customer‟s business because of the poor quality of the product.Corning‟s plant

manager asked each plant employee for ideas to resolve the problem. Through teamwork, the

problem was resolved and the customer was retained. IBM also distributed a book of quality

success stories. In one story,employees had reduced the building, testing, and delivery time for

an airborne communications location system from 120 days to 45 days. Although IBM

accomplished this task as a special effort to support the Army during Operation Desert Shield,

many of the changes made to accomplish the reduction have since become standard procedures

and have thus increased the timeliness of operations. Finally, a famous story in Johnson &

Johnson-a company that values innovation-is about the firing of James Burke, who later

became the company‟s chairman of the board. Mr. Burke was tired by a former chairman,

General Johnson, for making a mistake. The following day, General Johnson rehired Mr. Burke

and publicly announced that what the company needed was people who made mistakes. The

point was that if people do not risk making mistakes in their efforts to be creative, nothing

Innovative would ever happen.

Company Heroes and Heroines Some officials believe that a good technique to encourage people to support a company‟s

values and beliefs is to make heroes or heroines of exemplars of those values. Every quarter,

each division at Corning singles out employees who exemplify the company‟s beliefs and

values, particularly those related to quality. The division recognizes these employees‟

contributions in front of the other divisional members to make their efforts well known. In

addition, Corning includes in a quality milestone book pictures of team members who have

presented quality improvement success stories at the annual “quality milestone” event. Thus,

these employees become well known for their contributions throughout the organization. At

DuPont, the Vice President of the Materials, Logistics, and Services Division, which is leading

the company‟s effort to change its culture, presents a quality leadership award to employees

who have made important contributions to improving quality. DuPont believes that other

employees will emulate the employees whose accomplishments have been

Recognized, rewarded, and publicized

Hiring the Right People Some companies attempt to recruit people who believe in or are willing to accept the

organizations‟ desired values and beliefs. The companies we visited, however, have not fully

developed processes and procedures to ensure success at this effort. Corning is moving toward

hiring people it believes will work well as team members and who are open and flexible by

having Corning team members participate in the hiring process. Some parts of the company also

test prospective employees to see if they will fit into the culture. Although Federal Express does

not try to determine if a prospective employee will fit into its culture in all respects, in the last 5

years, it has used tests to help predict whether an applicant will be successful at the work

expected. The company looks for people with the particular skills needed to perform or to learn

to perform a job. Academics and literature have discussed communications in the hiring process

as a means of modifying the attitudes of prospective employees. They note that it is important to

communicate realistically the organization‟s current and desired beliefs and values and both

positive and negative aspects of the job. They believe that this can help in attracting and

retaining employees who share the organization‟s desired beliefs.

Slogans Some of the companies use slogans to symbolically communicate their desired values and beliefs.

For example, 3M believes slogans it has used, like “People count at 3M,” “ Innovation working

for you,” and “What won‟t they think of next,” have served as a means of communicating values

and making employees proud of the company they work for.

Reasons to change OC in Indian corporate world

Impact of changing education system

In today‟s changing world there are a lot of changes occur in the education system,

many of the students go to abroad for their higher studies ,many of the students are

placed in international companies and many foreign students joined Indian companies

,their basic education as well as higher studies impact the organization culture because

of the value ,beliefs formation while theireducation.

Impact of technology In recent times, technology has become an ever increasing

presence in the workplace and it is one of the hot topics among the business world. More

and more businesses, large and small, are trying to incorporate the latest technology into

their operations. This notion is evidenced by the fact that the popular business

publications now have technology sections, and information systems departments are

becoming critical components of most organizations. The scope of technology that an

organization can adopt or employ is vast, ranging from something seeming simple, such

as buying a personal computer with a word processor, to investing in the latest state-of-

the-art computer-aided manufacturing machinery. Regardless of the complexity of the

system or the size of the organization, one thing is certain - the incorporation of such

technology or information systems will accompany change. Purposely, I have not said

that they will cause change because the reverse is also true. Implementation of

technological systems can either act as a catalyst for change or be the means of achieving

a desired change. Regardless of the motivation, a properly integrated system ideally will

take into account the impact on the organization before it is put into place. This paper

will look at the relationship between technological advances/information technology and

change in an organization. It will also give some examples of how information

technology has been implemented in some specific cases in industries such as aerospace,

computers, oil and gas, railroad, and manufacturing.

The contribution of information technology and its impact on the organization is emphasized by

Nadler, who states "perhaps the largest single influence on organizational architecture and design

has been the evolution of information technology." Technology certainly has its place among the

key elements which shape an organization. The model used by Andersen consultants is typical

when it lists technology as an equal attribute, along with strategy, people, and business

processes. The interconnectivity of these elements should be obvious, for one cannot be changed

in a transformational sense without at least consideration of the others. While the formal

structure or arrangements within an organization will likely be affected by the arrival of new

technology, this does not have to be the case in all situations. A transformation can also occur

through the business changing the way it operates. More specifically, information technology can

be linked to changes in factors such as job design, physical layout or location, supervisory

relationships and autonomy, cooperation inside and outside the organization, and formation of

work teams.

One futuristic idea whose time has come is the notion of the virtual workplace. This concept is

based on the idea of employees being able to work independently as a result of having access to

information. One article proposes "the virtual workplace provides access to information you need

to do your job anytime, anyplace, anywhere. . . employees do not have to be tied to their offices

to do their jobs."(Jenner, p.16) The idea of not even having a set office space certainly would be

a change from the typical routine of showing up at the office from 9 to 5 (ideally) and

performing your work at your desk. Such a plan would obviously be dependent on the job to be

accomplished, but it is interesting to think of the supervisory implications. Such employees

would have the ultimate amount of autonomy and would have to be managed accordingly. Tasks

would have to be more objective or goal oriented and measures of job performance could no

longer depend on face to face interaction, but rather would have to be tied strictly on the ability

to complete assigned tasks.

The tasks that employees perform within an organization are being drastically affected by the

increased mechanization and application of technology as a part of the production process. In

many settings, tasks previously performed directly by human operators are being automated,

changing the human's task to one of supervisory control. Now the expectations of an average

employee in such an environment has to change, because they are no longer performing

repetitive tasks, but rather must be able to recognize and react to problem situations. Such

progress has to start somewhere, and in reality this movement towards robotics has its roots in

the theories of scientific management. Thus the changes in technology day by day changes the

culture in organizations.

Impact of changing expectations of employees

In an effective team culture, the concept of context is addressed. Team members understand why

they are participating on the team and how the team fits within their organization. In an effective

team culture, team members understand where the work of their team fits in the total context of

their organization‟s strategic plan and success goals.

When the organization culture supports teamwork, team members understand how the strategy of

using teams fits in the total context of their organization‟s strategic plan and success goals. Team

members understand why using teams will help their organization attain its business goals. In

fact, they understand the context of a team culture so well, they are convinced that teams are the

only way their organization will excel.

In a successful team culture, teams understand where their work fits in the total context of the

organization‟s mission, goals, principles, vision and values. Team members spend time defining

their team culture by agreeing upon team norms and expectations within the company‟s overall

team context.

Finally, team members understand that 20% of the problems they will experience as a team will

fall within the context of the task or mission the team is assigned to accomplish. The other 80%

of the problems will relate to their team culture and the processes team members establish and

commit to for interacting.

Impact of workload

There is comfort found in standing still. It is only natural that employees facing a drastic

organizational change wonder how that change will impact them on an individual level.

Improperly managed organizational change can create fear among the ranks, which impacts job

satisfaction, performance and productivity. Workers could lose confidence, fearing a loss of job

stability. They may also fear that changes will increase their workload or that they will not be

capable of learning how to use new technology. Organizations must combat these fears and

lessen the impact on employees.

The term "organizational culture" commonly is used to refer to the nature or personality of an

organization. A company may have a positive organizational culture, marked by open

communication and trust in organizational leadership, or it may have a negative culture in which

workers have little trust in their leaders. The effect of organizational change on employees often

depends on the culture of the organization. Additionally, a negative organizational culture has

the capability of hindering change, making necessary transitions more difficult for employees to

bear.

Effective change management is essential to streamlining the change process and reducing the

negative impact on employees. When organizational changes are properly managed, workers

perceive the benefits of a proposed change and accept the change. Workers benefit from properly

managed change in a variety of ways. For example, a technological update may offer employees

the opportunity to learn new skills. New technology can also increase job satisfaction by

reducing the workload.

Impact of changing aspirations of company’s customers customer satisfaction and building long-term relationships is what your corporation strives to

achieve as part of its culture. Training employees to take the time to listen to a customer's

inquiries or concerns and resolving complaints to the satisfaction of both the customer and the

company is part of corporate culture for positive customer relations. The happier your customer,

the more likely she will make a recommendation to others which helps to boost your bottom line.

Customer service strategies can be effectively nothing more than a guideline in a corporate

annual report. Or, they can be visibly implemented for the customer to see. Implementing a

customer service strategy as part of a company's corporate culture is a step towards building

customer loyalty. It requires a commitment by company employees to satisfy the needs of

customers in its day-to-day operations. The effectiveness of the customer relations strategy is

critical in a competitive market.

A company's products and services change all year long. A company engaging in an annual

survey may not be keeping up with a customer's ever changing demands. Companies which

adopt the principle of continuous feedback on brand awareness as part of its corporate culture

keep its products fresh and customers satisfied promoting customer loyalty. Feedback tells the

customer that her opinions are important to the company in order for the company to do its best

to meet her needs.

Customers drive product innovation. Understanding your customer and his buying habits can be

the lifeblood of establishing the right products. Data from surveys and other client feedback is

only as effective as the data management system that the company is willing to adapt. It can help

to achieve accurate analysis for invaluable insight into a customer's needs and behaviors.

Adapting new technology to a company's business practices as part of a company's customer-

centric corporate culture is a tool to satisfy customers to stay competitive.

Organizations can impede profitability by not demonstrating willingness to welcome direct

customer input into its product development. Brainstorming at the corporate level can be

restrictive for a company in terms of innovation. Establishing customer innovation centers help

to give corporations an opportunity to team with customers to create product ideas and test

prototypes before it hits the market. Customers and corporations engaging in modern day

corporate culture are able to work together to break barriers of corporate boardroom product

development in the name of customer satisfaction.

Methods adopted to change the OC in India

EFFECTIVE LEADERSHIP

Committed and active participation of leadership organizational culture and leadership are

elements in a company that work in conjunction with one another toward organizational success.

Both culture and leadership influence how the company will function and what will be achieved.

Either culture will determine how leadership functions, or leadership will transform the

organizational culture so that the culture supports the organizational. Organizational Leaders

Organizational leaders influence how people within it will function and the course that the

organization will take, now and in the future. Leaders can be managers, supervisors, appointed

leaders or natural leaders. Regardless of their official capacity in an organization, they must

understand the organizational culture in order to motivate others to function in the manner that

they desire.

Appointed vs. Natural Leaders

Each organization has individuals who are appointed as leaders. There are also those

within the company who are natural leaders, who are sought out by workers for guidance

and support. These natural leaders can exist at all levels of the organization and greatly

influence the attitudes and values of the workers. Appointed leaders and/or managers

must be capable of identifying the natural leaders of the organization and working with

them to gain support so that organizational planning and functions will be successful.

Assigning a culture manager Assigning a Culture Manager Some companies have assigned a person or group to facilitate their

culture change efforts. For example, Corning has a manager o corporate quality and a quality

council. Most have not, however, because company officials generally believe that many

employees should be involved in their culture change or perpetuation efforts. They consequently

rated assigning a culture manager as the least important of the techniques they use.

Top Management support When a company is motivated to change its culture, strong top management leadership and a

display of commitment and support for desired beliefs and values are considered crucial to its

success. Senior officials must articulate and live by organizational values and beliefs to

demonstrate to employees that top management is committed to making permanent cultural

changes and is not merely paying lip service to them. Companies have used various means to

explain new values and beliefs and to motivate acceptance and internalization of them. For

example, top management officials often discuss the organizational values and beliefs in

meetings, internal publications and television networks, and videotapes. They also implement

employees‟ suggestions that support the organization‟s values and beliefs and reward them for

their accomplishments.

To achieve success, top management needs to ensure that all facets of the organization-reward

and promotion systems, the organizational structure and management style, training,

communications, symbolism, and systems, l procedures, and processes-reflect its values and

beliefs.

Training Training has been used as a very important tool for promoting and developing

skills related to an organization‟s beliefs and values. Corning, for example, has made

training the cornerstone of its efforts to change to a culture that places high value on

quality. Its goal is to devote 5 percent of the work year to training. Corning has trained all

its 26,000 employees in

quality awareness and is now training its employees in communications, problem solving,

statistics, interpersonal, group participation, and management skills to enable them to work in the

company‟s new total quality environment. Ford also places a high value on training as a tool to

instill in its employees its mission, values, and guiding principles. In training on technical,

human relations, and management skills, for example, Ford includes discussions and examples

emphasizing the importance of supporting its values and beliefs to achieve success.

A Statement of Values and Beliefs According to company officials, articulating

an organization‟s values and distributing a written statement of those values to employees

is an

Important technique. When Ford began to change its culture about 10 years ago, it developed a

written statement of its mission, values, and guiding principles. This statement was an important

step in Ford‟s efforts to change because Ford believes that its culture must flow from and be

Compatible with its mission and that its employees must clearly understand what its mission is.

Johnson & Johnson has had a written statement of its beliefs and values, called “Our Credo,”

since the mid-1940s. Over the years, the company has used this credo to guide its business

decisions. For example, when someone placed poison in several packages of one of the

company‟s premier products, the company offered full rebates to customers and destroyed all of

the product at a cost of $250 million, consistent with its credo, which states that “our first

responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use

our products and services.” The company took this step against the advice of every major

advertising company and one of the country‟s most respected business schools, which believed

that the company‟s product market share would never be regained. The company proved them

wrong,

Management Style Companies that are changing their culture often have to change

their Management style, sometimes drastically. When DuPont decided to change its

culture to achieve continuous improvement through its people, it began changing from an

authoritative to a participative management style. To make this change, DuPont has

begun to delegate authority to its employees and allow them to participate in the decision-

making process. For example, upon established problem discovery and problem solving

teams that include organizational members from the highest to the lowest levels of the

company. Because it is encouraging and empowering its employees to contribute fully to

the company‟s continuous improvement, DuPont Believes that it will be able to achieve

its vision of becoming a “great global company through people.”

In 198 1, Motorola also began changing to a participative management style after it began to

change its culture to emphasize quality. Although the company had been people-oriented for

years, it began to encourage and empower its employees to suggest better ways to do the work

and make decisions. Motorola believes that its employees are willing to risk suggesting

improvements that increase efficiency because of its policy not to lay off employees with 10 or

more years of service. The company believes that this change will help it to achieve its

fundamental objective of providing total customer satisfaction through the reduction of defects in

all its products and services to the very low rate of 3.4 per million. To empower its employees in

its cellular telephone business, Motorola made the following changes: Employees are now

responsible for quality because inspectors were removed. Employees can stop the production line

when they see problems in the quality of the products. Work teams make decisions and select

new team members when there are openings. Employees conduct reviews of their peers‟

performance and comment on supervisors‟ performance. Employees monitor their own

attendance at work.

Organizational Gatherings Some companies use organizational gatherings to explain their values and beliefs to employees.

For example, at an annual “quality milestone” event, Corning‟s chairman of the board addresses

the employees on what quality means to the company, and several teams of workers give

presentations about quality improvements they have made. Ford and AT&T used what they call

“cascade” meetings to convey and discuss their values and beliefs. The results of meetings at the

highest level in the company are passed to employees at the organizational level directly below

until employees at the lowest level of the organization have been & informed. In this way, the

companies are assured that all employees are familiar with their values and beliefs.

Organizational Structure When developing a culture or considering a culture change, a company generally selects an

organizational structure that will suit its desired culture. Federal Express has a more centralized

structure than some companies because of its focused mission to provide “totally reliable,

competitively superior global air-ground transportation of high priority goods and documents

that require rapid, time-certain delivery.” At the same time, Federal Express values and supports

its employees and has limited its organizational structure to five layers between the lowest level

employee and the chief executive officer. IBM has reduced the number of layers in its

organizational structure in support of its beliefs of respect for the individual, service to the

customer, and excellence in execution. This structure change allows more employees

to participate in decision-making and speeds the company‟s decision-making process.

Criteria for recruitment, selection, promotion, retirement and

excommunication.

One of the powerful ways of changing an organization's culture is through the type of people

brought into, retained, and advanced in the organization. You should be able to establish a

desired culture base in an organization by bringing in and advancing individuals with the values

you want, and eliminating those with undesired value bases.

That is what organizations are attempting when they propose tightening up admissions

standards to screen out undesirables. This strategy is consistent with the belief that the problems

experienced by the organization result from a few "bad apples" and do not reflect systemic

problems. However, if a strong culture bias exists, it may be too strong to be changed by

selection alone.

The military academies are organizations which change over one fourth of their membership

every year, which should provide an opportunity for changes to the organizational culture as new

members are brought in. The catch, however, is that the socialization of those new members rests

in the hands of those who are already part of the existing culture. How could the military

academies make systemic culture changes not negated by the socialization process new members

go through?

Work Stories Shape Culture The tone and the content of your work stories are powerful forces in shaping and strengthening

your work culture. What your employees share with each other and talk about frequently

becomes imprinted on the organizational mind. Just like the little voice in your head talks to you

all day long, so the stories shared in the workplace form a substantial core of the employee

experience.

And, inspiring work stories are even more significant for new employees. New employees listen

to the work stories to learn about your culture and the work environment you provide for

employees. New employees use work stories to cultivate and create expectations around their

relationship with their new manager. What other employees tell you to expect and experience

powerfully frames your own experience.

New employees, especially, find their thinking imperceptibly influenced by the work stories.

Without awareness, they develop patterns of behavior and respond based on the expectations

formulated by the stories, oftentimes not by the reality.

So, given that employees tell stories; work stories affect and shape workplace culture, often

imperceptibly; and new employees are most influenced from day one by work stories that are

inspiring – or not, what‟s an employer to do? Can you stem the tide of employee negativity and

reinforce the inspiring components of the work stories your employees tell?

of the model added a feedback loop from receiver to sender. Nevertheless, the model suggested

Public relations excellence theory is grounded in a systems perspective .

Changes in organization culture of

Indian corporate

Environment

Honda will step up its effort to create better clean, fuel-efficient engine technologies and

improve further the recyclables throughout its product lines. Honda will also advance alternative

fuel technologies, including fuel cells. In addition, Honda will continue its efforts to minimize

environmental impact, as measured by the * Life Cycle Assessment, in all of its business fields,

including logistics and sales. In its production activities, Honda will promote environmental

preservation issues under its Green Factory concept.

Continuing to Increase Society‟s Trust in and Understanding towards Honda

In addition to continuing to provide products incorporating Honda‟s advanced safety and

environmental technologies, Honda will continue striving to earn even more trust and

understanding from society by, among other things, undertaking activities for corporate

governance, compliance, and risk management and contributing to society.

Through these Company-wide activities, we will strive to materialize Honda‟s visions of “value

creation,” “globalization,” and “commitment to the future,” with the aim of sharing the joy with

Honda‟s customers, thus becoming a company that society wants to exist.

About Honda’s organization culture

Existing over the years, Honda has gained prominence in the global community through

ceaseless innovation and a commitment to servicing the needs of society. Honda's unique

corporate culture and groundbreaking approach to developing new technologies enable the

organisation to develop exciting new products that provide freedom of movement for people

around the world. With responsibility to the environment, a commitment to local markets, and

respect for people as its guiding principles, Honda aims to contribute to an increasingly mobile

society characterised by quality of life, comfort and convenience

As a responsible member of society whose task lies in the preservation of the global

environment, the company will make every effort to contribute to human health and the

preservation of the global environment in each phase of its corporate activity. Only in this way

will we be able to count on a successful future not only for our company, but for the entire

world."

Country specific data is also there in the various sections. E.g. Tsunami relief in India under

Humanitarian

India: Candidates engaged in hands on practice session at the sewing tailoring workshop

In order to help local rural people, especially women, Hero Honda has set up a Vocational

Training Centre. So far 26 batches comprising of nearly 625 women have been trained in

tailoring, embroidery and knitting. The Company has helped women trained at this center to set

up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of the

women are now self-employed.

With support from Honda Motor India Pvt Ltd. and the Indian Institutes of Technology, in 2007

the Honda Foundation launched the Honda Young Engineer and Scientist's Award (YES

Award)in India. The YES Awards are intended to recognize outstanding students who will

become trailblazers in ecotechnology. All recipients will be eligible for additional funds to

continue their research as professional interns or graduate students in Japan.

Effects by changing the organization

culture

The culture. Performance relationship The discussion so far has been dealing primarily with identifying various ways of thinking about the relevance of the culture concept for corporate performances. Critique against promises of using culture as a means for corporate goals have been raised. Much interest has nevertheless been given to effects on performance of the ‘right’ or strong enough corporate culture. There is a lot of writing and talk about this but also a few systematic empirical studies. Let us now turn to empirical investigations of culture–performance relationships. The effects of organizational culture on performance There are four views on the relationship between organizational culture on performance: 1 Perhaps the most common one is the so-called strong-culture thesis. It has often been assumed that commitment of an organization’s employees and managers to the same set of values, beliefs and norms will have positive results – that the ‘strength’ of ‘corporate culture’ is directly correlated with the level of profits in a company (e.g. Denison, 1984). Researchers adopting this hypothesis tend to place new kinds of human relations (involving employees in decision-making, allowing them some discretion, developing holistic relations, etc.) at the core of organizational culture (e.g. Peters and Waterman, 1982; Ouchi, 1981). It is frequently argued that a distinct organizational culture contributes to performance through facilitating goal alignment – a common culture makes it easier to agree upon goals as well as appropriate means for attaining them. There are also positive effects on motivation – a shared culture encourages people to identify with the organization and feel belongingness and responsibility for it, it is assumed (Brown, 1995). 2 There are also, however, researchers that suggest the reverse relationship between culture and performance: that high performance leads to the creation of a ‘strong’ corporate culture (cultural homogeneity). It is possible that success brings about a common set of orientations, beliefs and values. A particular workplace spirit may develop and there may be little incentive or encouragement to question ‘ways of doing things’, thus forming broad consensus andpossibly conformism. This culture may be more than just a by-product of high performances: values and meanings may reproduce a successful organization and thus contribute to performances. It may also be a source of conservatisand a liability in situations calling for radical change. 3 Another idea draws upon contingency thinking to suggest that under certain conditions a particular type of culture is appropriate, even necessary, and contributes to efficiency. Wilkins and Ouchi (1983), for example, consider culture an important regulatory mechanism in organizational settings too complex and ambiguous to be controlled by traditional means (bureaucracy and the market).In corporate situations where these means of regulation function well, corporate control as a distinct form is less significant. 4 Still another version says that ‘adaptive cultures’ are the key to good performance, i.e. cultures that are able to respond to changes in the environment. Such cultures are characterized by people willing to take risk, trust each other, are proactive, work together to identify problems and opportunities, etc. It may be tempting to say that ‘adaptive cultures’ are self-evidently superior. There easily enters an element of tautology here: ‘adaptive’ implying successful adaption and this is per definition good for business. But as Brown (1995) remarks, there are organizations that are relatively stable and fit with a relatively stable environment, and risk-taking and innovation are not necessarily successful. Too much change can lead to instability, low cost-efficiency, risky projects and a loss of sense of direction.

Culture spans the range of management thinking and organizational culture has been one of the

most enduring buzzwords of popular management. Why? Organizational culture is apparently

unifying and this strongly appeals to management‟s concern with projecting an image of the

organization as a community of interests. Perhaps most importantly culture penetrates to the

essence of an organization – it almost analogous with the concept of personality in relation to the

individual and this acute sense of what an organization is – its mission, core values – seems to

have become a necessary asset of the modern company. There is the vexed question of whether

or not organizational culture can be managed. Academics interested in understanding and

analyzing culture tend to say no. On the other hand for facing too much competition in

globalization, there is a need to change the organization culture oveall.By changing the culture in

organizations, companies able to get effective feedback from employees.

BIBILIOGRAPHY WEBSITES www.google.com www.ask.com http://en.wikipedia.org/wiki/Human_resources http://en.wikipedia.org/wiki/Organizational_culture http://www.soi.org/reading/change/process.shtml http://www.beyondlean.com/corporate-culture.html BOOKS CORPORATE STRATEGY AND STRUCTURE IN INDIA

Writer V.k Chopra